Borders To Open 25 Seasonal 'Pop-Up' Stores In US Malls

    DOW JONES NEWSWIRES 
 

Borders Group Inc. (BGP) said it will open 25 seasonal "pop-up" stores in the U.S. this fall that will operate through the holiday season as the bookstore company looks to boost its sales.

The second-biggest U.S. bookstore operator by sales behind Barnes & Noble Inc. (BKS) said the stores--which will be open Oct. 25 through Jan. 31--will average about 2,500 square feet and will sell top titles, big new releases, e-readers and holiday-themed items, among others.

Borders has struggled of late amid a sharp decline in sales and customer traffic, while its margins have continued to fall. Other retailers, such as Toys 'R' Us Inc., have announced similar plans to operate pop-up stores, looking to take advantage of sales during key periods without the cost of operating a store in those areas during off-peak months.

At the same time, retail-property owners are looking to fill empty space as vacancy rates have increased the past several years as companies retrench--like Borders--or close.

The temporary Borders stores will mostly be in malls where the company once had stores, Chief Executive Mike Edwards said. "Where it didn't make business sense for us to operate stores on a permanent basis in these areas, we can open a seasonal store and serve the holiday shopping needs of our customers," he added.

As of July 31, Borders had 679 stores, down from 886 a year earlier.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail];